No clue what EPS means, but iPhone sales makes a lot of sense.
Four years of 12 month cycles got people on that kick. Makes sense that the quarter (being three months) after the end of that anticipated cycle saw far fewer iPhone sales as people were waiting for the new one.
EPS = Earnings per share. It's a little more complicated, but essentially it's a company's earnings divided by the average number of shares outstanding during the quarter. It's each shareholder's "share" of earnings. P/E is the stock price divided by EPS. Apple's P/E is relatively low compared to other technology companies.